Barrington Real Estate: The Market Is Turning a Corner Heading into 2026

As your Barrington REALTOR®, I know the last few years have felt like holding your breath in the housing market. High mortgage rates led to a lot of hesitation, both from buyers and homeowners who were reluctant to sell.

But in the Barrington area and the broader Northwest Suburbs of Chicago, I'm quietly seeing the momentum shift. Sellers are re-entering the market. Buyers are re-engaging. For the first time in a while, we're seeing real movement.

It’s not a flood—but it’s a definite market shift that is setting the stage for a much stronger year in 2026.

So, what's driving this comeback in the Barrington, IL housing market?

Here are the three big trends that are breathing life back into real estate right now.

1. Mortgage Rates Are Trending Down, Boosting Affordability

Mortgage rates will always see ups and downs—that's just market reality. However, when you look at the larger trend, it's clear rates have been easing for most of this year (see graph below):

This is a game-changer for Barrington area buyers. In just the last few months, we’ve seen the best rates of 2025. This directly impacts what you can afford, lowering your borrowing costs and increasing your overall buying power.

As Sam Khater, Chief Economist at Freddie Mac, puts it:

“On a median-priced home, this could allow a homebuyer to save thousands annually compared to earlier this year, showing that affordability is slowly improving.”

This is not a theoretical change—it has a real, tangible impact. Data from Redfin shows a buyer with a $3,000 monthly budget can now afford roughly $25,000 more home than they could one year ago. That’s a significant gain, and it's a key reason why serious buyers are getting back in the game.

2. More Homeowners Are Ready To List in Barrington

For a long time, the “lock-in effect”—homeowners not wanting to trade a 3% rate for a 6-7% rate—kept inventory tight. While many still have lower rates, that effect is beginning to ease as rates come down and life changes take priority.

I’m seeing this firsthand: More Barrington homeowners are deciding to move. This is slowly opening up inventory and giving buyers the options they've been waiting for.

Data from Realtor.com highlights just how much the number of homes for sale has grown. And the really interesting part is that the market is approaching levels that haven’t been seen for the past six years (see the blue on the graph below):

This return to more normal inventory levels is fantastic for our local market. It gives Barrington home buyers more negotiating room and more choices, which ultimately helps bring the housing market closer to a healthy, balanced state.

3. Serious Buyers Are Re-Entering the Market

It's a two-way street: sellers are listing, and buyers are moving, too. With better affordability and more choices, active buyers are finally pulling the trigger.

The Mortgage Bankers Association (MBA) reports that purchase applications are up compared to last year, a clear signal that demand is building again (see graph below):

This momentum is expected to continue. Economists from Fannie Mae, the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR) all forecast moderate sales growth going into 2026.

I always advise my clients with strategic foresight: this recovery won't happen overnight. But it is the start of steady, measurable improvement. For those of us focused on the Barrington, IL real estate market, this is the signal we’ve been waiting for.

Bottom Line: Your Strategic Move in 2026

After several slower years, the market is finally beginning to turn a corner. Declining mortgage rates, more listings, and growing buyer activity all point to a market gaining real traction.

My role as your Barrington, IL REALTOR® is to provide you with a strategic edge in this changing environment. Whether you're a first-time buyer, looking to move-up, or downsizing, 2026 is shaping up to be the year for action.

Let's connect today to discuss what this positive momentum means for your specific goals in the Barrington, IL housing market and how we can develop a winning strategy for your next move.